Taxes in the U.S. are too low -- especially taxes on corporations and those who make more than $1 mil per year in income. This is proven by the fact that during 2006 when GDP grew a healthy 3.4%, Washington ran a deficit of $248 billion -- and that doesn't include the cost of the Iraq war, which is conveniently left off budget. If you can't balance the budget during a period of economic expansion, then taxes are too low or spending is too high or both. However, the fact that corporations are stuffed with cash means that the budget problem is probably a revenue problem. During the Clinton years, the government ran a surplus. The dollar was strong. A Euro cost $0.83. Today it takes $1.33. When the budget is balanced or in surplus, the markets love it - they have confidence in the dollar and that Washington has its books in order. A budget surplus is bullish. An increase in income tax rates back to the Clintonian top rate of 38% plus elimination of corporate tax loopholes would bolster the dollar and decrease the price of oil. The short-term pain of increased taxes would be offset by long term economic growth and a stronger dollar.